Bank Commissioner in Malang Created False Records and Defrauded Customers of Billions
The Financial Services Authority (OJK) has transferred a suspect and evidence in an alleged banking crime case at PT BPR DCN in Malang, East Java, to the Public Prosecutor at the local District Attorney’s Office. This action follows the completion of an investigation, demonstrating the OJK’s commitment to firm, consistent, and sustainable law enforcement to maintain the integrity of the banking industry and protect public interests. In this case, the OJK named one suspect with the initials GK, who served as a Commissioner and Shareholder of PT BPR DCN. Previously, OJK investigators had submitted the case file to the Public Prosecutor, which was declared complete on 26 June 2026. The investigation proceeded despite resistance from the suspect, including failing to comply with summons, attempting to flee, and filing two pre-trial motions against the suspect designation.
Agus Firmansyah, Head of the Integrated Financial Services Sector Surveillance and Policy Department at OJK, stated that the investigation was a follow-up to a tiered supervisory process, ranging from routine monitoring and special examinations to inquiries and full investigations. He noted that this step reflects the OJK’s commitment to ensuring financial service providers comply with laws and regulations while maintaining public trust in the financial sector. Based on the investigation results, the suspect allegedly committed several acts constituting banking crimes. These included failing to record cash withdrawals in PT BPR DCN’s books via a cash voucher mechanism from January 2020 to June 2024, amounting to approximately Rp5.8 billion. The suspect also created false entries in the bank’s books in February 2024 by pledging collateral from the bank’s inventory of precious metals and gold jewellery worth around Rp600 million.
Furthermore, the suspect caused false entries in the books by granting 71 credit facilities worth approximately Rp14.8 billion without the debtors’ knowledge between July 2020 and June 2024. The suspect also failed to record the collection of funds from 12 depositors, comprising 25 deposit certificates with a total value of around Rp7.8 billion, during the period from March 2020 to 2022. For these actions, the suspect is charged under Article 49 paragraph (1) letter a and/or letter b, Article 49 paragraph (2) letter b, and/or Article 50A of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, which amends the Banking Law, in conjunction with Article 55 paragraph (1) and Article 65 of the Criminal Code. The suspect faces a maximum prison sentence of 15 years and a maximum fine of Rp5 billion. The OJK continues to coordinate and cooperate with law enforcement agencies, including the Indonesian National Police and the Attorney General’s Office, in handling criminal acts in the financial services sector. The authority affirmed it will continue to strengthen professional, firm, and sustainable law enforcement against any alleged criminal acts in the financial services sector to maintain financial system stability, strengthen industry governance, and enhance public protection.